BOARD MEETING DATE: January 5, 2007
AGENDA NO. 28

Adopt Public Notification Procedures for Emergency Diesel Internal Combustion Engines and Industry-wide Categories of Gas Stations and Dry Cleaners, Pursuant to Air Toxics Hot Spots Information and Assessment Act (AB 2588)

SYNOPSIS:

Staff has developed procedures for the Board’s consideration for public notification for emergency diesel internal combustion engines and the industry-wide categories of gas stations and dry cleaners under AB 2588.  The proposed procedures differ from the notification procedures for the relatively few large (core) stationary sources that have traditionally been in the program.  In recognition that there are thousands of cases that may require public notice, staff recommends posting a notice at the facility and in newspapers, with information on specific facilities available on the SCAQMD web site and provided in hardcopy at the SCAQMD library and to public libraries, school districts, and planning agencies. Town Hall and other community meetings can also be used to disseminate this information.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:       

1. Adopt the Proposed Public Notification Procedures for Emergency Diesel Internal Combustion Engines (DICEs), and Industry-wide Categories of Dry Cleaners and Gas Stations in the AB 2588 Program.
2. Direct staff to work with stakeholders and bring the draft language for the web site, newspapers, libraries, and school districts, and facility posting to the Stationary Source Committee for review.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Air Toxics " Hot Spots" Information and Assessment Act (AB 2588, Connelly) was enacted in September 1987.  It addresses public concerns that emissions from individual facilities might cause a local concentration of air toxics “Hot Spots” or an elevated risk of adverse health effects.  Public notification, which is the subject of the proposal for Board consideration in this item, is one of the key elements of the program.  Public notification under AB 2588 recognizes the public’s right to know about toxic emissions from facilities in their neighborhood.  The Governing Board previously established notification procedures for large, individual (core) facilities and set a cancer risk of 10 in one million as the notification threshold.

There are four basic elements to AB 2588: emission inventory, health risk assessment (HRA), public notification, and risk reduction.  Larger stationary sources or “core” facilities are required to report the types and quantities of nearly 200 toxic air contaminants that their facilities emit.  Based on their emissions inventory, certain facilities are required to prepare a HRA.  The facilities that pose a significant health risk, as determined by an approved HRA, are required to notify all of the affected people about possible health risks from toxic air contaminants and to hold a public meeting.  To date, 39 such meetings have occurred.  The SCAQMD Board adopted Public Notification Guidelines in September 1992 for the “core” facilities.  In addition, facilities with risks above the risk reduction threshold of 25 in one million as required by District Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, would have to develop and implement a risk reduction plan.

AB 2588 allows districts to designate and handle smaller or “industry-wide source” (IWS) categories in a different manner than the “core” facilities.  Criteria for IWS facilities include:  1) the facility must emit less than 10 tpy of any criteria pollutant; 2) the facilities in the industry share the same Standard Industrial Classification code; 3) the majority of the facilities are small businesses; 4) the facilities would suffer severe economic hardship by individual compliance; and 5) the facilities can be easily and generically characterized.  The same key elements apply to these facilities; however, streamlined public notification procedures are necessary due to the large number of these facilities.  To date, the SCAQMD has identified seven industry-wide categories (approximately 8,100 facilities within the SCAQMD Basin):

• Retail gasoline dispensing;

• Perchloroethylene dry cleaning;

• Auto body shops;

• Fiberglass molding;

• Printing and publishing;

• Metal plating and finishing, and

• Wood stripping / refinishing.

Staff has developed notification procedures for the Board's consideration for emergency DICEs and the industry-wide categories of dry cleaners and gas stations under AB 2588.  A guidance document has also been prepared and attached to this Board package regarding how inventory and risk assessments are being done for these categories.  Board approval is not required for the guidance document.  For risk assessments, due to the large number of IWS and emergency standby DICE facilities, staff will use generic lookup tables.  For emergency standby DICEs, rated brake horsepower of the engines, emissions factor, engine size, annual operating hours and receptor distance will be used to calculate risk.  For gasoline stations and perchloroethylene dry cleaners, throughput, emissions, and receptor distances will be used to calculate risk.

The proposed notification procedures will require public notice for facilities with DICEs (approximately 1,100 facilities and for the IWS dry cleaners and gas stations (which includes approximately 1,400 dry cleaners and only a few gas stations).  Other IWS notification procedures will follow.

DICEs emit diesel particulate matter.  Diesel engine exhaust has been identified by CARB as a toxic air contaminant based on its potential to cause cancer, premature death, and many other health problems.  Emissions are regulated by an Air Toxic Control Measure adopted by CARB in March 2004 and SCAQMD Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines, adopted by the Governing Board in April 2004.

Approximately 5,000 facilities with 8,700 emergency diesel engines operate in the Basin.  Compliance with the ATCM and Rule 1470 brings most emergency engines below 10 in a million.  However, notification is likely needed for facilities with emergency engines exempt from the ATCM and Rule 1470, and for facilities with multiple emergency engines.  Approximately 3,800 facilities will have cancer risks less than the notification levels.  Approximately 1,100 facilities are expected to be over notification thresholds and will qualify for the proposed streamlined notification.  Staff is recommending that facilities already in the core portion of the program and facilities with prime engines (large engines need to provide power on a relatively continuous basis) follow the public notification procedures previously established by the Governing Board for core facilities.  However, core facilities with emergency DICEs will be included in the web notification if their non-diesel risk is below the notification level, but their total risk with DICEs is over the notification threshold. 

Dry Cleaners emit perchloroethylene, or perc, which has been determined to be a possible/probable human carcinogen.  These facilities are regulated by Rule 1421 - Control of Perchloroethylene Emissions from Dry Cleaning Systems.  Unless a dry cleaner submitted a permit that required evaluation of perc for New Source Review (September 1998 and later), their risk will be over 10 in a million and can be many times higher.  The industry is under-going a transition to non-perc, less or non-toxic alternatives, which is required by Rule 1421 by December 31, 2020.  Approximately 1,400 dry cleaners are expected to require public notification.

Gas stations emit benzene, a known human carcinogen.  Gas stations are subject to SCAQMD Rule 461 - Gasoline Transfer and Dispensing.  There are approximately 4,600 gas stations in the Basin.  Only a few are expected to be over 10 in a million cancer risk.

Proposal

In an effort to streamline the implementation of AB 2588 for emergency DICEs, dry cleaners, and gas stations and reduce the associated administrative and financial burden to the facilities and the District, staff has developed a streamlined notification approach.  Staff proposes to begin with emergency DICEs and the industry-wide categories of gas stations and dry cleaners under AB 2588.  Other industry-wide categories will follow at a later date.  The specific notification procedures are contained in the attached document (Public Notification Procedures for Emergency Diesel Internal Combustion Engines, and Industry-wide Categories of Gas Stations and Dry Cleaners in the AB 2588 Program).

There are thousands of cases that may require public notice.  Staff recommends newspaper notification with information on specific facilities available on the SCAQMD web site.  Actual hardcopies of facility information and risks would be available at local libraries, SCAQMD, and school districts for inspection by the public.  Facilities would be required to post a notice that would be visible for visitors.  SCAQMD Town Hall and other community meetings can also be used to disseminate this information.  Staff also proposes to prepare community maps identifying facilities that trigger public notice.

Supplemental Guidance Document

A guidance document, which is consistent with CARB guidelines, has been developed to address inventory and risk assessment for these sources. It is attached as an informational item which does not need Board approval.  As this notification process is implemented, staff will work with stakeholders to refine the guidelines, as needed.  The emission inventory for these sources is covered under the requirements of SCAQMD Rules 1470, 1421, and 461 for DICEs, dry cleaners and gas stations respectively.

For risk assessments, due to the large number of facilities, staff will use the information reported by each facility or key facility parameters according to the applicable source specific rules (e.g. Rules 1470, 1421, and 461) and generic lookup tables that have been developed to calculate risk from the key information reported by each facility.  For emergency standby DICEs, rated brake horsepower of the engines, emission factor, engine size, annual operating hours and reported receptor distance will be used to calculate risk.  Staff intends to follow the recently approved addition for emergency DICEs to the CARB guidelines for emission inventory under AB2588, unless there is sufficient evidence for health concerns on a case-by-case basis.

For gasoline service stations and perchloroethylene dry cleaners, the amount of material purchased and reported receptor distances will be used to calculate risk.  Based on staff’s preliminary analysis, there are only a few gasoline dispensing stations, and approximately 1,400 perchloroethylene dry cleaners and 1,100 emergency DICE facilities that will be subject to public notification requirements.

Risk reduction, in large part, is addressed through the ATCMs and source-specific rules for DICEs, dry cleaners, and gas stations.  Future rule development is planned to address facilities with DICEs that are over 25 in a million, the risk reduction level in Rule 1402.  Rule 1421 for dry cleaners includes requirements to meet Rule 1402 and also complete phase-out of perc by December 31, 2020.  Gas stations are under Rule 461, and no gas stations are expected to be over the risk reduction level.

Public Process

The SCAQMD has held several meetings and conference calls to discuss the proposed procedures.  The first meeting with environmental groups was held on February 19, 2002.  The American Lung Association (ALA), Communities for a Better Environment (CBE), the Coalition for Clean Air, and the Natural Resources Defense Council (NRDC) participated in the conference call.

The second meeting with industry representatives was held on February 28, 2002.  The Automotive Trade Organizations (AuTO) of California, the California Cleaners Association, the California Small Business Alliance, the Korean Dry Cleaners and Laundry Association of Southern California, British Petroleum/Atlantic Richfield Corporation (BP/ARCO), Hoyt Corporation, and Shell Oil Company attended the meeting.

The process was put on hold while awaiting completion of CAPCOA risk assessment guidelines for dry cleaners, the ATCM and Rule 1470 for DICES, and Rule 461 amendments.

The third meeting with industry representatives was held on March 23, 2006.  The California Air Resources Board (CARB), Community Coalition for Change, Eastern Metropolitan Water District, Southern California Edison, City of Los Angeles, OEHHA, Los Angeles and Orange County Sanitation Districts, Arrowhead Regional Medical Center, Coca Cola, Boeing, Del Amo Action Committee, NBC Universal, Southern California Air Quality Alliance, URS Corp., and Chevron Oil Company were among the meeting attendees.

A public consultation meeting was held on October 26, 2006 to discuss notification procedures for DICEs.  Approximately 35 people attended.  A second public consultation meeting was held on December 14, 2006, with approximately 30 attendees.

During the week of December 10, 2006, staff also participated in conference calls with representatives of the dry cleaning and retail service station industries, and with environmental and community groups.

Staff will work with stakeholders in the development of the notices for posting at facilities, and the information for web posting and dissemination to libraries, planning agencies, and school districts.

Issues Raised

Representatives of environmental and community groups would like to include direct mail to households and notices to each school child for every facility over the public notification threshold.  Some representatives also want public meetings in the same manner as core facilities or have one or multiple meetings in each city.  Staff thinks that the number or facilities, notices, and meetings would overwhelm resources for the district and be expensive for many small businesses.  In response to this issue, staff proposes to include information on these facilities in Town Hall and other community meetings.

As industry association representative requests that uncertainty and range of risk be included on the web site with the cancer risk listed for each facility.  Staff will work with all stakeholders to develop the text explanation that will accompany the facility information.

Other business representatives with emergency DICEs have requested the ability to do full risk assessments rather than use the screening assessment as the basis for and information included in the cancer risk numbers published on the web.  Most of these comments have been from facilities already in the core AB 2588 program, so they will have the opportunity to update their inventory and to do a full HRA with their quadrennial update.

California Environmental Quality Act (CEQA)

The SCAQMD has reviewed the proposed project pursuant to state CEQA Guidelines §15002(k)(1).  Because the Public Notification procedures for emergency DICEs, dry cleaners and gas stations for the AB 2588 program would impose no additional requirements than currently required, it can be seen with certainty that there is no possibility that the proposed project has the potential to have a significant adverse effect on the environment.  Thus, the proposed project is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) - Review for Exemption.  A Notice of Exemption, in accordance with CEQA Guidelines Section 15062, will be prepared and will be filed with the county clerks immediately following the adoption of the proposed project.

Cost Impacts

While still providing important information to communities, streamlined notification procedures will significantly reduce the costs to facilities and to SCAQMD.  Staff proposes to phase in the implementation over the next five years such that existing district resources will be sufficient to implement the notification procedures.

Attachments (EXE 1.5 mb)

1. Public Notification Procedures for Emergency Diesel Internal Combustion Engines (DICEs), and Industry-wide (IWS) Categories of Dry Cleaners and Gas Stations in the AB 2588 Program
2. Emission Inventory and Risk Assessment Guidelines:  Emergency Diesel Internal Combustion Engines, Perchloroethylene Dry Cleaners, and Gas Stations